HOW TO BUY A PROPERTY INVESTMENT
Lets presume you are a complete first timer looking for a residential property to rent out. This is business and business is numbers so how do the numbers stack up. The numbers must clear 8pc. That means for every $100000-00 the house costs you must get $8000 per annum in rent or the house is overpriced. That way with a bit of luck and a 10pc deposit the house is self funding. Lets say you buy a house at $250000 pay $25000 deposit you need to have it rented out at $385-00 pw to cover the outgoings. So back to your numbers property doubles in value every ten years on average so your $25000 deposit in ten years has made a capital gain of $250000.
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